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Can Susan and Raphael afford this home using the monthly income loan criterion? Next week, your friends Susan and Raphael want to apply to the Tenth National Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Susan and Raphael also collected the following information: Their financial records report a combined gross before-tax annual income of $125,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,823 per month. . Their property taxes and homeowner's insurance policy are expected to cost $2,713 per year. . Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. . They have accumulated savings of $38,500 that can be used to satisfy the home's down payment and closing costs. The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30%. Use either the table of monthly payments (necessary to repay a $10,000 loan), your financial calculator, or the maximum affordable mortgage loan formula to complete the following home affordability worksheet. (Note: When completing the form, round cach dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of th table may also be used in the lower section.) Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Interest Rate (%) 10 Years 5.0 106.0655 5.5 108.5263 6.0 111.0205 6.5 113.5480 Loan Maturity 15 Years 20 Years 79.0794 65.9956 81.7083 68.7887 25 Years 58.4590 61.4087 30 Years 53.6822 56.7789 59.9551 84.3857 71.6431 64.4301 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 7.5 118.7018 92.7012 80.5593 73.8991 69.9215 8.0 77.1816 83.6440 86.7823 8.5 80.5227 9.0 121.3276 123.9857 126.6758 129.3976 132.1507 95.5652 98.4740 101.4267 104.4225 107.4605 89.9726 83.9196 73.3765 76.8913 80.4623 84.0854 87.7572 9.5 93.2131 87.3697 90.8701 10.0 96.5022 Home Affordability Worksheet Based on Monthly Income 1. Annual income High Value Low Value Amount 2. Monthly income High Value Low Value Amount 30% 25% Home Affordability Worksheet Based on Monthly Income 1. Annual income 2. Monthly income 3. Lender's monthly income affordability ratio 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 8. Planned loan maturity (years) 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly Income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income 7.5% 15 Given these results, which statement regarding Susan and Raphael's mortgage qualification process and the purchase of their $155,000 target hon is true? Susan and Raphael do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Susan and Raphael qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. 30% 25% 7.5% 2. Monthly income 3. Lender's monthly income affordability ratio 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 8. Planned loan maturity (years) 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income 15 Given these results, which statement regarding Susan and Raphael's mortgage qualification process and the purchase of their $155,000 target home is true? Susan and Raphael do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Susan and Raphael qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Can Susan and Raphael afford this home using the monthly income loan criterion? Next week, your friends Susan and Raphael want to apply to the Tenth National Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Susan and Raphael also collected the following information: Their financial records report a combined gross before-tax annual income of $125,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,823 per month. . Their property taxes and homeowner's insurance policy are expected to cost $2,713 per year. . Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. . They have accumulated savings of $38,500 that can be used to satisfy the home's down payment and closing costs. The lender requires a minimum 20% down payment, and an affordability ratio that ranges from a minimum of 25% to a maximum of 30%. Use either the table of monthly payments (necessary to repay a $10,000 loan), your financial calculator, or the maximum affordable mortgage loan formula to complete the following home affordability worksheet. (Note: When completing the form, round cach dollar amount to the nearest whole dollar. Unless labeled differently, all of the following values represent dollar amounts. Also, some values calculated or used in the upper section of th table may also be used in the lower section.) Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Monthly Payments Factors Maximum Affordable Mortgage Loan Formula Interest Rate (%) 10 Years 5.0 106.0655 5.5 108.5263 6.0 111.0205 6.5 113.5480 Loan Maturity 15 Years 20 Years 79.0794 65.9956 81.7083 68.7887 25 Years 58.4590 61.4087 30 Years 53.6822 56.7789 59.9551 84.3857 71.6431 64.4301 87.1107 74.5573 67.5207 63.2068 7.0 116.1085 89.8828 77.5299 70.6779 66.5302 7.5 118.7018 92.7012 80.5593 73.8991 69.9215 8.0 77.1816 83.6440 86.7823 8.5 80.5227 9.0 121.3276 123.9857 126.6758 129.3976 132.1507 95.5652 98.4740 101.4267 104.4225 107.4605 89.9726 83.9196 73.3765 76.8913 80.4623 84.0854 87.7572 9.5 93.2131 87.3697 90.8701 10.0 96.5022 Home Affordability Worksheet Based on Monthly Income 1. Annual income High Value Low Value Amount 2. Monthly income High Value Low Value Amount 30% 25% Home Affordability Worksheet Based on Monthly Income 1. Annual income 2. Monthly income 3. Lender's monthly income affordability ratio 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 8. Planned loan maturity (years) 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly Income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income 7.5% 15 Given these results, which statement regarding Susan and Raphael's mortgage qualification process and the purchase of their $155,000 target hon is true? Susan and Raphael do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Susan and Raphael qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. 30% 25% 7.5% 2. Monthly income 3. Lender's monthly income affordability ratio 4. Maximum monthly mortgage payment (PITI) 5. Estimated monthly property tax and insurance payment 6. Maximum monthly loan payment (P and I only) 7. Expected interest rate 8. Planned loan maturity (years) 9. Mortgage payment factor per $10,000 (from the Loan Maturity table) 10. Maximum loan based on monthly income 11. Funds Available for a Down Payment and Closing Costs 12. Required (20%) Down Payment 13. Maximum Purchase Price Based on Monthly Income 15 Given these results, which statement regarding Susan and Raphael's mortgage qualification process and the purchase of their $155,000 target home is true? Susan and Raphael do not qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion. Susan and Raphael qualify to purchase their $155,000 target home according to the Monthly Income Affordability Worksheet criterion